Dolby Laboratories Valuation

Is DLB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DLB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DLB ($83.77) is trading below our estimate of fair value ($113.12)

Significantly Below Fair Value: DLB is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for DLB?

Other financial metrics that can be useful for relative valuation.

DLB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.7x
Enterprise Value/EBITDA22.5x
PEG Ratio2.4x

Price to Earnings Ratio vs Peers

How does DLB's PE Ratio compare to its peers?

The above table shows the PE ratio for DLB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.7x
QLYS Qualys
40.7x6.9%US$6.1b
TDC Teradata
60.9x35.7%US$3.8b
GEN Gen Digital
10.2x7.0%US$14.1b
CHKP Check Point Software Technologies
22.8x3.3%US$19.2b
DLB Dolby Laboratories
42.5x17.8%US$8.0b

Price-To-Earnings vs Peers: DLB is expensive based on its Price-To-Earnings Ratio (42.5x) compared to the peer average (33.7x).


Price to Earnings Ratio vs Industry

How does DLB's PE Ratio compare vs other companies in the US Software Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: DLB is good value based on its Price-To-Earnings Ratio (42.5x) compared to the US Software industry average (45x).


Price to Earnings Ratio vs Fair Ratio

What is DLB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DLB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio42.5x
Fair PE Ratio38.4x

Price-To-Earnings vs Fair Ratio: DLB is expensive based on its Price-To-Earnings Ratio (42.5x) compared to the estimated Fair Price-To-Earnings Ratio (38.4x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DLB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$83.77
US$97.50
+16.4%
0.5%US$98.00US$97.00n/a2
Mar ’25US$82.35
US$97.50
+18.4%
0.5%US$98.00US$97.00n/a2
Feb ’25US$84.82
US$97.50
+14.9%
0.5%US$98.00US$97.00n/a2
Oct ’24US$79.26
US$107.00
+35.0%
8.4%US$116.00US$98.00n/a2
Sep ’24US$85.03
US$107.00
+25.8%
8.4%US$116.00US$98.00n/a2
Aug ’24US$88.87
US$104.50
+17.6%
11.0%US$116.00US$93.00n/a2
Jul ’24US$83.68
US$100.33
+19.9%
11.0%US$116.00US$92.00n/a3
Jun ’24US$81.87
US$100.33
+22.6%
11.0%US$116.00US$92.00n/a3
May ’24US$83.44
US$98.67
+18.2%
12.4%US$116.00US$90.00n/a3
Apr ’24US$85.42
US$98.67
+15.5%
12.4%US$116.00US$90.00n/a3
Mar ’24US$82.21
US$98.67
+20.0%
12.4%US$116.00US$90.00US$82.353
Feb ’24US$80.42
US$93.67
+16.5%
17.0%US$116.00US$80.00US$84.823
Jan ’24US$70.54
US$93.67
+32.8%
17.0%US$116.00US$80.00US$86.183
Dec ’23US$76.10
US$93.67
+23.1%
17.0%US$116.00US$80.00US$87.003
Nov ’23US$67.62
US$97.00
+43.4%
11.3%US$116.00US$90.00US$81.554
Oct ’23US$65.15
US$90.67
+39.2%
1.0%US$92.00US$90.00US$79.263
Sep ’23US$73.48
US$100.00
+36.1%
16.2%US$128.00US$90.00US$85.034
Aug ’23US$77.58
US$100.00
+28.9%
16.2%US$128.00US$90.00US$88.874
Jul ’23US$70.82
US$100.00
+41.2%
16.2%US$128.00US$90.00US$83.684
Jun ’23US$77.30
US$100.00
+29.4%
16.2%US$128.00US$90.00US$81.874
May ’23US$77.47
US$116.00
+49.7%
8.1%US$128.00US$105.00US$83.443
Apr ’23US$79.09
US$112.00
+41.6%
9.6%US$128.00US$100.00US$85.424
Mar ’23US$72.55
US$106.67
+47.0%
5.8%US$115.00US$100.00US$82.213

Analyst Forecast: Target price is less than 20% higher than the current share price.


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